Category: Employee Benefits
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A 2016 marketing suggestion for small business advocates
I am starting 2016 with this bold self-promotion that is, bluntly, outside of my comfort zone. The intent is to give a boost to my public appearance schedule that, during a long period of injury recovery, dropped off while I was not working in this field. If you produce conferences, write a blog, offers workshops or produce…
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News: 2015 small businesses health plan tax filing extension
This article summarizes the issues that apply to small business employers only. See the IRS publication for provisions of Notice 2016-4 that pertain to larger employers. Small business employers who provide health benefits outside of an insurance policy have a two month extension on reporting those benefits to employees and a three month extension for…
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International small business health plans for 2016
New options for avoiding excise taxes on international worker health benefits Small business employers with employees stationed outside of their home country face some difficulties providing medical insurance. In most cases employers have fewer health benefit plan choices available compared to firms with all their employees in the U.S. For 2016 there are several additional options…
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More on Section 105 plans
A reader commented on my vague discussion in an earlier post about the difference between an employee benefit plan and a payroll accommodation plan. The first type is regulated and subject to ACA market reforms and the second type is not. Describing the distinctions is not something that I feel could be usefully summarized in a…
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Common errors with small business health plans
I often read adviser comments online that reflect a common tax error about small business health plans and especially employer payments or reimbursements for individual health insurance. In some cases the same errant thinking even extends to tax treatment of uninsured health benefits. Some advisers think that it is appropriate to account for employer-provided health…
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Small business ACA compliance toolkit available for 2015
My firm Freedom Benefits offers a 2015 compliance toolkit to help small business employers who find themselves on the wrong side of 2015 ACA requirements. The tax penalties can be significant for the tens of thousands of firms affected. Equally important, IMO, is the need to effectively communicate the required changes to employees who are…
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The proper way for S corporations to report health benefits of shareholders
U.S. federal tax law differentiates the tax accounting methods for employee health benefits from the treatment of self-employed individuals. Operators of small businesses organized as S corporations under state law are considered to the self-employed for income tax reporting but are typically also employees of the S corporation. Employer paid health benefits are most commonly…
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Plan ahead to avoid tax penalties on W2 health benefits
We are only weeks away from the first required reporting of employee health benefits on employee W2 forms. I suspect that payroll companies that serve small businesses are still working on communications and procedures for this. The fact is that the payroll companies don’t have access to the data to complete this requirement and their…
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Surprising lawmaker response to small business tax relief effort
Today a representative from the Washington DC office of the National Federation of Independent Businesses met with a staff member at NJ Senator Menendez’ office in a last minute attempt to gain support for small business tax relief from the Affordable Care Act. See yesterday’s blog post for background on this story. Up to 100,000 small…
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Last minute tax relief efforts in NJ and PA
I was honored tonight to have been asked by the health care policy lobbyist Keven Kuhlman for NFIB to help prepare a last minute lobbying campaign to appeal for tax relief to the harsh 2015 small business penalties under IRC 4980D. I prepared six letters for Pennsylvania and New Jersey lawmakers. Kuhlman has a morning…